Features of a VA Loan That Make The VA Mortgage Great for Vets

While it might be obvious, VA mortgages are only available to eligible applicants. In general, eligibility for a VA mortgage comes from being in the military for at least 90 days during wartime periods, 181 days in non wartime periods, as spouse of a deceased vet who was killed in the line of duty, and as a reservist with at least 6 years of service.
Eligibility is one feature of VA loans, let’s look at some more of the major features to help you decide on whether this mortgage is right for you.

Purchase or Refinance – against popular belief, VA mortgages are good for either buying a home or refinancing your current mortgage. Many people think that VA loans are only for home purchases – but the VA refinance program is one great program if you have very little equity in your home and you want to save some money on your payments.
No Mortgage Insurance – Unlike other mortgage programs from Fannie Mae, Freddie Mac and FHA, VA loans do not have mortgage insurance. With no monthly mortgage insurance required payments for VA loans versus payments for these other loan types are generally less expensive which means that the loan applicant can either afford a slightly bigger mortgage or more easily qualify.
Lower Mortgage Rates – Mortgage rates are determined in large part based on the risk of the mortgage and the applicant. VA mortgage rates are very competitive when compared to Conventional mortgages from Fannie Mae and Freddie Mac as well as FHA. The reason for this is that the US government guarantees a portion of the mortgage against default in favor of the mortgage investor. What this means is that VA loans are less risky than other mortgage types which means that lenders can offer better interest rates.
Eligibility Can Be Reused – There is a popular myth out there that once you use your VA loan benefit that you cannot use it again. This is simply not true. Your eligibility will determine the maximum loan amount that you can get. If you don’t use that full loan amount, it is possible under certain circumstance to have a second VA loan equal to the remainder of what you are eligible for. Also, as long as you are eligible (like you don’t default on a VA mortgage or a student loan for example) if you sell your home and payoff your Va loan you can regain your full elibility status.